Realty Check | Day 2 | Ashok Gupta: Tier 2 and 3 cities growing at rapid pace

07 Aug,2014

By Ashok Gupta
CMD, Ajnara India Ltd

 

It is true that land is limited and more of it cannot be created and thus the value of the real estate sector is of prime importance to every country. In India, this sector contributes the most to the gross domestic product and employment of the country; as the sector contributed 6.3 percent to the Indian GDP in the final quarter of the last year and went on to provide as much as 7.6 million job opportunities in 2013, and this is not the first time that this sector has produced such results. This goes to show the performance of this sector in the nation’s upbringing.

 

The real estate sector in India is divided into numerous clusters today with various top notch brands having their presence in almost all major states and cities. At present Bengaluru, Delhi/NCR, Mumbai and a few other developed states fall under the Tier 1 category of real estate as they are infrastructurally well-equipped and hold the presence of India’s best developers. Speaking of Tier 2 and 3 cities like Bhopal, Lucknow, Indore, Raipur, Vadodara, Patna, Ranchi, Chattisgarh and others, they have learnt from the Tier 1 regions and are developing at a rapid pace. This has come out as a major growth driver for the Indian real estate sector in general.

 

In the past few decades, this sector was popular amongst end-users only as enough investment in property was not prevalent. While real estate as an asset is regarded as the safest and highest return providing investment today, currently there are more of investors or second home buyers than end users. Also, due to the immense impact of globalisation in India, top companies around the globe are settling in and hence, the demand for commercial property has sky-rocketed in the last decade or so. The last five years especially witnessed a huge revolution in demand for real estate as more and more brands have entered and people have started to understand the value of this sector.

 

The only thing that remains now is the due credit that this sector is to receive from the governing bodies in the country. There is an urgent need to form a separate government entity for this sector so as to aid in cleaning the dirt persisting in the sector which will help to safeguard the interests of the future investors and stakeholders.

 

Coordinated by Shobhana Nair

 

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